A look at the changing real estate landscape in Ashland and the nation

By Carrie Dahle

First-time homebuyers are navigating a landscape drastically different from what previous generations faced, reshaping communities across the country, including Ashland.

According to recent findings by the National Association of Realtors, just 24% of today’s homebuyers are entering the market for the first time — a historic low that’s raising concerns about affordability and accessibility in real estate. Compare this to the pre-2008 era, when first-time buyers made up nearly 40% of the market, and it becomes clear that the dynamics have changed in ways that the older generations may not immediately recognize.

For starters, home buying has skyrocketed relative to income growth, making it harder for people to save up for a down payment. In the past, a single-income household could realistically save for a home in a matter of years. Today, it often takes dual incomes, strict budgeting, and years of disciplined saving — particularly tough when younger buyers also contend with other financial challenges like high rent, student loans and credit card debt.

For nearly half of first-time buyers, high rental costs alone make it difficult to set aside anything for a down payment. Student loans add another layer of difficulty. With the average student debt now in the tens of thousands, it’s a heavy financial burden that previous generations didn’t face to this degree.

Another significant factor is the challenge of saving for a down payment, which is increasingly out of reach for many. Today’s first-time buyers are putting down an average of 10% — a substantial amount. Some loan programs are available with 5% or less down. However, with rising home prices, today’s first-time buyers need even larger amounts of cash upfront just to stay competitive. That can feel insurmountable without years of saving, especially for those juggling other financial obligations.

For first-time buyers who haven’t been able to build home equity elsewhere, coming up with a 10% or more down payment can feel almost insurmountable, especially in competitive markets like Ashland, where prices continue to climb. Many young buyers are resorting to loans or gifts from family members. Statistics show that 25% of first-time buyers this year received financial help from family or friends to make their purchase possible.

These hurdles contribute to a shift in demographics among homeowners, and the age of first-time buyers reflects this. The median age for first-time buyers has now reached 38, a dramatic change from the 1980s, when the average first-time buyer was in their late 20s. The delay in homeownership means young professionals are waiting longer to settle into communities, which can have lasting impacts on neighborhoods, schools and the local economy. A community with fewer young homeowners may see less vibrancy and diversity, as younger generations contribute to cultural activities, innovation and community building.

In Ashland, where home prices are often higher than in surrounding areas, these barriers are felt even more acutely. It’s clear that affordability in housing isn’t just about prices; it’s also about ensuring opportunities exist for younger generations to plant roots. Addressing these challenges and finding creative ways to support first-time buyers will be essential to fostering a balanced, thriving community that serves all ages and stages of life.

Despite these challenges, homeownership remains the single greatest source of personal wealth in the U.S., offering a place to call your own and a pathway to build long-term financial security. For those able to navigate the hurdles, buying a home is still one of the most rewarding investments a person can make.

With patience, planning, and the proper support, today’s aspiring homeowners can overcome the obstacles and take that first step toward a brighter future.

Ashland resident Carrie Dahle is president-elect of the Rogue Valley Association of Realtors and principal broker at John L. Scott, Ashland. Email her at [email protected].